As a result of the news of a possible buyout by German based Aton, South Africa based Murray & Roberts’ (M&R’s) share rose by a drastic 50%. Aton plans to acquire all the shares in M&R for R15 ($1.27) per share. Aton previously already held 33% of M&R’s shares and had pre informed its intention of acquiring all the shares to M&R’s shareholders.
M&R is yet to review the proposed correspondence received from Aton and it also informed M&R’s shareholders that a formal offer is yet to be made. Further announcement is to be made after the review from independent board.
Aton, a mining, engineering, aviation and health technology sector company, has advised that it has received an irrevocable undertaking from investment service company Allan Gray which is acting on behalf of this clients that represent about 10.9% of M&R’s ordinary share capital, to accept the proposed offer, if made.
Aton is expected to have a positive impact in the long term for M&R’s management and employees and all the related stakeholders.
According to the statement from the company:
“This will enhance the capability of South Africa’s underground mining service industry to compete in international markets through leveraging Aton’s relationships with customers and other stakeholders. Importantly, it will create a strong platform for geographic expansion throughout Africa and globally.”
M&R is expected to benefit from the skills and knowledge transfer and also benefit in technology and innovation through this buyout. Aton states that if the deal goes through it would also hint that a large multinational is confident in the South African economy with the potential FDI up to R4.5 billion ($380.8 million) into South African economy. Aton also added that it understands and respects the importance of transformation and diversity in the context of broad-based black economic empowerment (BBBEE) in the country and for M&R’s South African operations and Aton intends to support M&R in its continued efforts to foster BBBEE initiatives
Aton is headquartered in Germany and is an investment company that invests in engineering, mining, aviation and technology companies. Aton Group portfolio currently consists of 10 company groups and as of 2016, Aton employed a total of 10271 people out of which 3885 were full time staff.
Founded in 1902, M&R is an in investment holding company, operates in the construction and engineering, underground mining development, and oil and gas markets. Headquartered in South Africa, M&R employs around 20642 employees.